Market Watch for late June and Early July 2010

Check last week's thread to catch up. I am sorry that we had to end the thread for last week. It was a lot of fun and frustration...not to mention drama. Actually, there is some great information there to continue with and unanswered posts.

Anyway, here is the new thread for the week.

Anybody that is reading or lurking in this thread is welcome to post. We are a very peaceful investment team here and we all help each other in any way that we can.

If this is your first time here...then welcome!

From the crew that resides within these walls...have fun and help each other learn and hopefully succeed!

Disclaimer for this thread: Always do your own due diligence (research). None of we people in here are investment advisers or brokers, or anything that resembles a professional when it comes to dealing with stocks. If you have any questions about any stock or anything said in here, check it out with your broker. We are just a bunch of people trying to make some money, just like anyone else. What you do is your sole responsibility and not mine or that of anyone else that posts in here. This is simply a discussion group and nothing more. Stocks are very risky and you could lose all of your money. Seek professional advice before doing anything whatsoever. We are amateurs in here and are wrong most of the time. Do not take any chances with our advice to each other or our self-seeking and self-fulfilling comments.
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Just in case you guys haven't been following along with the script ... This email got a lot of traction yesterday, it appears it wasn't for shrub eyes and ears but got put up anyway ...

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From Shannon Newby to Anvil, etal: WITH LOVE

Verity, Can you post Newby's response to your buddy Anvil it seemed to piss him off and he doesn't have an ihub account. I showed him the link below.
This came directly from Shannon: Ty

----- Forwarded Message ----
From: Shannon Newby <sknewby@gmail.com>
To: bxxxxxxx@yahoo.com
Sent: Sat, June 26, 2010 11:35:10 AM
Subject: Fwd: this is what is killing the stock fyi!
"ATTENTION:
To all so called conventional bankers especially (IHUB =Anvil), you are welcome to study my financing structure for the QASP deal for free.

The first investment grade private bank that is securing the AAA Trust company is totally secured by the net equity valuation of the assets being purchased by QASP. These assets are well in excess of $165mm and more importantly Newby & Associates, Inc. warrant execution price is substantially lower than the post financing/acquisition valuation yet much higher then current market valuation. The worst-case scenario for QASP's inability to raise enough capital in a secondary offering by maturity of the loan, will result in heavy dilution from the exercised warrants. Which by the way is enough to cover 100% of principal and interest on the loan.

Unlike most conventional lenders, I believe in the GREATER RISK versus REWARD ratio. Most Fortune 500 companies would never agree to such a substantial dilution to raise capital unless they have no other alternative. But, since this is not a Fortune 500 company, I will assume this structure is acceptable.

Keep in mind that the net equity valuation post financing/acquisition is more than double the loan amount.

Now if we take into account next years EPS for this newly consolidated business, I am betting that QASP stock can be sold at a multiple of those earnings which is a significant premium to today's share price.

This structure only works for companies who can acquire enough net equity in their acquisition targets to cover the dilution caused by the warrants being executed in the future to repay the loan in the event of a loan repayment deficiency by the borrower. If QASP's net equity post financing/acquisition was less than double the loan's principal and interest coverage, I would not be able to fund.

My structure is solely relying on my ability to dilute the net equity at a much higher stock valuation versus selling the newly acquired assets in a fire sale, even with my first position lien.
I have more than enough leverage capability to exercise the warrants and exit the loan position.

As far as the $10mm line, I decided to close both loans simultaneously due to the time is of essence put on the company.

This has been most interesting and I look forward to further educating the conventional and soon to be out work bankers.

Remember the name NEWBY & ASSOCIATES, INC. I have a feeling the WORLD is going to take notice after QASP.
Best Regards,
Shannon Newby
President
Newby & Associates, Inc.”

I follow the Q on the shrub....it's craziness for sure. I'm long on QASP and appreciate thoughts here and I think we get some reasonable opinion here on the buzz. I toss things through my head based on what I read and recently came to a relative conclusion, that while we may get some dilution of shares.....the company is growing and strong and the real deal. I get tired of the word "scam." While some dilution may occur, that doesn't make this thing a scam. And right now, I think thats the only major thing the scam criers can run with.

It might not sky rocket, but it's headed upwards from here....

I really believe Dean is a good guy.......I think his PR's are designed to keep everyone up to date, so that the company is as up front with what is going on, but sometimes his PR's are taken the wrong way and picked apart for unfair reasons.

In any case......I appreciate the tidbits of info and I believe most people believe the same way I do overall. Just wanted to share a little of my thoughts. I'm in for a while. I've flipped a few shares, but long with the core of my shares and will keep playing some shares via the swing traders game since its trading so positively and negatively on news.

I guess Dean's guarentee about closing all of the deals by end of June was typical BS as usual. He will probably come out and say that he mean't to say end of July...then August...then Sept...you get the point!

Makes me think...all BS!!!!!

JS

PURCHASED THE CABIN IN THE WOODS...THANKS MEL, MALONE, AND THE BLUE DOG

I guess Dean's guarentee about closing all of the deals by end of June was typical BS as usual. He will probably come out and say that he mean't to say end of July...then August...then Sept...you get the point!

Makes me think...all BS!!!!!

JS

Hi Jeff,

Yep, we've seen this before! But, I'm still feeling REALLY good about all of this. I seem to remember feeling this way about SPNG though, and that hasn't worked out too well.....LOL

I think there are a few people over at the shrub that are about to jump out of windows. Not me though, I'm here for the long haul. Go QASP....LOL

Quasar Aerospace News

NEWS - Quasar Aerospace Update on Funding

JACKSONVILLE, FL, Jul 01, 2010 (MARKETWIRE via COMTEX) -- The CEO of Quasar
Aerospace Industries, Inc. (PINKSHEETS: QASP), Dean Bradley, regrettably
announces that Newby and Associates has confirmed a delay in the funding being
provided to Quasar Aerospace Industries, Inc. Mr. Newby has informed the company
that although the company had met its contractual obligations and provided the
$725,000 dollars required by Newby & Associates for funding, additional fees
will be needed to complete the transaction.

Mr. Newby has informed the Company that The Assets Backing the SBLC presented to
the bank for the cash funds of the Loan had been rejected due to insufficient
funds backing the SBLC. This bank is requiring that any SBLC that is to be
pledged as collateral must be 100% cash backed and not a combination of cash
equivalent Assets. Newby and Associates have worked expediently and have moved
the SBLC to another large worldwide recognized Banking institution with which
Mr. Newby's associates have a long term relationship. This Banking institution
has given preliminary approval to use the assets to secure a line of credit that
will be used to complete the $110,000,000 in funding for Quasar Aerospace
Industries, Inc. This delay has caused the accumulation of additional fees in
the approximate amount of $1,775,000. The company and Newby & Associates are in
the final stages of raising said fees.

Newby & Associates has given a new time line to serve as a retraction to the
Friday, June 24, 2010 press release. The new time line is that Newby &
Associates will be able to provide cash into Quasar Aerospace Industries, Inc.
Attorneys escrow account within 10 Banking days of receiving the $1,775,000 in
fees that need to be paid to the owners of the assets backing the SBLC, as well
as the issuer of the SBLC. There were a total of over $5 million in fees
associated with the original Loan, however, in the initial structure the
majority of the fees would have been paid upon closing. This delay and changing
of the Banking institution being used to provide funding has required more of
those fees to be paid up front.

Mr. Bradley, as well as Newby & Associates, are committed to finishing this
Funding as rapidly as possible and will continue to provide timely updates on
the progress.